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Total Utility and Marginal Utility | Commodity

The upcoming discussion will update you about the difference between total utility and marginal utility. Utility, in ordinary sense, means usefulness. But, in economics, it means want-satisfying power of a commodity or service — the power to satisfy a human want. Thus, a pen has utility to a teacher but not to an illiterate farmer. […]

Income Elasticity of Demand (With Formula) | Commodity

The measure of responsiveness of demand to changes in income is called the income elasticity of demand. Income elasticity of demand measures the degree of responsiveness of quantity of a commodity demanded to a certain change in income of buyers and is defined as the percentage change in quantity demanded divided by the corresponding percentage […]

Price Elasticity of Demand and Marginal Utility (Relationship)

In this article we will discuss about the relationship between price elasticity of demand and marginal utility. We often draw a distinction between necessities and luxuries. While it is possible to do without a luxury good like a VCR it is not easy to go without a necessary good to one individual may be a […]

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